Parkway Properties, Inc.
announced today that it signed a 190,000 square foot long-term lease renewal with the General Services Administration ("GSA") at 233 North Michigan in Chicago. The GSA's lease was originally set to expire November 30, 2009, and has now been extended through November 30, 2020. The lease economics reflect fair market value and include an effective rental rate of over $30.50 per square foot with 10 months of free rent and approximately $7.8 million in tenant improvements or additional rental rate concessions. Additionally, approximately $3.0 million in leasing commissions will be paid in the fourth quarter of 2009 related to this renewal. The building is 91.0% occupied as of November 23, 2009.
Steven G. Rogers, President and Chief Executive Officer, stated, "We are pleased to announce this important renewal by General Services Administration at 233 North Michigan which secures valuable occupancy in a highly competitive environment. The U.S. Department of Health and Human Services has been a longstanding Parkway customer since 1999, and we are pleased to have retained our relationship with them. Their decision recognizes the long-term attractiveness of the Chicago East Loop market and our building and gives Parkway a stronger market position as we move through the recovery."
Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, leasing, acquisition, and ownership of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 65 office properties located in 11 states with an aggregate of approximately 13.4 million square feet of leasable space at November 23, 2009. Included in the portfolio are 21 properties totaling 3.9 million square feet that are owned jointly with other investors, representing 28.8% of the portfolio. Fee-based real estate services are offered through the Company's wholly-owned subsidiary, Parkway Realty Services, which also manages and/or leases approximately 1.3 million square feet for third-party owners at November 23, 2009.
Parkway Properties, Inc.'s press releases and additional information about the Company are available on the World Wide Web at www.pky.com.
CONTACT: J. MITCHELL COLLINS
CHIEF FINANCIAL OFFICER
(601) 948-4091
WILLIAM R. FLATT
CHIEF OPERATING OFFICER
(601) 948-4091
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